[ET Net News Agency, 2 January 2018] Daiwa Research lifted its target price for
TravelSky Technology (00696) to HK$29 from HK$25 on rollover, and maintained its "buy"
rating.
The research house believes the company's business outlook remains stable following
TravelSky's recent NDR in Hong Kong and Singapore, which Daiwa hosted.
Daiwa cited management saying it is discussing the shareholding structure with potential
investors, and investors from related industries are keen to create synergies. Daiwa
expects margins to remain stable. Management mentioned that while EBIT and net margins
currently are relatively high compared with historical levels, its goal is to sustain them
going forward.
Daiwa believes this may be possible as the company's new-generation system could help to
generate extra revenue from ancillary services, though price negotiations with the
airlines would be tough. (KL)